Friday’s Stock Watch
The broader
markets extended
yesterday’s selling as the Nasdaq notched in its second distribution
day in a row. Earnings warnings from Juniper Networks
(
JNPR |
Quote |
Chart |
News |
PowerRating) and Jabil Circuit
(
JBL |
Quote |
Chart |
News |
PowerRating) sent key
technology sectors, including the semiconductors and Internet, below their
upward trend lines. Stocks on our watch list experienced some heavy selling,
with yesterday’s breakout making another day of gains.
Market breadth was negative, with
the Nasdaq down volume dominating up volume by over 6:1, and declining issues
over advancing issues by 2:1. The NYSE fared better with down volume over up
volume by a ratio of 1.5, and declining issues over advancing issues by a slight
margin.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed
down
0.85% to
9,985.18. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed
down
3.25% to
1,139.93.
The Nasdaq [$COMPQ |$COMPQ] closed down 3.24% to
1918.54.
| NYSE | NASDAQ | |
| Advancing Issues | 1,266 |
1,284 |
| Declining Issues | 1,853 |
2,408 |
| Advancing Volume |
549,256,000 |
255,936,000 |
| Declining Volume |
845,996,000 |
1,733,104,000 |
| Total Volume | 1,420,882,000 |
2,010,144,000 |
| New 52-week Highs | 14 | 12 |
| New 52-week Lows | 6 | 0 |
Top sectors:
Morgan Stanley Healthcare Payor
Index
(
$HMO.X |
Quote |
Chart |
News |
PowerRating), up 0.87% at 433.32.
The Computer Hardware Index
(
$HWI.X |
Quote |
Chart |
News |
PowerRating), up 0.38% at 151.92.
Losing sectors:
CBOE Internet Index
(
$INX.X |
Quote |
Chart |
News |
PowerRating), down 6.27% at 124.64.
Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), down
5.58% at 507.60.
Sectors With New Highs:
Business Services – 7
Construction – 3
Home Furnishing – 3
Medical – 5
Mortgage Investment – 3
Regional Banks – 5
Residential Construction – 3
Restaurants – 4
Trucking – 5
Watch List Action
Krispy Kreme
(
KKD |
Quote |
Chart |
News |
PowerRating) carried over from yesterday’s breakout with a 2.52%
gain on over twice average volume. This is very encouraging when we see heavy
volume support a move against the trend of the overall market.
American Healthways Inc
(
AMHC |
Quote |
Chart |
News |
PowerRating), down 20%
on over four times average volume, was whacked by investors over disappointing
revenues. The company announced that earnings should double for the next year,
though revenues for the quarter ending November 30th came in at a 48 percent
increase, the low end of analysts expectations. The stock’s fall was caught by
its 50-day moving average, and we will continue to watch its progress until it
falls below its breakout point.
Recent Breakouts
We monitor the action of Recent Breakouts as an indicator
of the market health for IT traders. When breakouts are acting well, this is a
good sign for the likelihood of further sustainable breakouts. When breakouts
are failing, IT traders should be even more cautious.
Copart Inc.
(
CPRT |
Quote |
Chart |
News |
PowerRating), down 3.73% on average
volume.
Ebay
(
EBAY |
Quote |
Chart |
News |
PowerRating), down4.06% on below-average volume.
Genesis Microchip
(
GNSS |
Quote |
Chart |
News |
PowerRating), down 6.15% on
above-average volume for a distribution day.
MTR Gaming Group
(
MNTG |
Quote |
Chart |
News |
PowerRating), down 4.94% on
twice average
volume.
Nvidia Corp.
(
NVDA |
Quote |
Chart |
News |
PowerRating), down 3.94% on average volume.
Panera Bread Co.
(
PNRA |
Quote |
Chart |
News |
PowerRating), up 0.41% on below-average
volume.
PEC Solutions
(
PECS |
Quote |
Chart |
News |
PowerRating), down 4.47% on average volume
for a distribution day.
THQ Inc.
(
THQI |
Quote |
Chart |
News |
PowerRating), down 7.38% on above-average volume for a distribution day.
Company Name |
Symbol |
12 Month RS |
Price |
Price Change |
Average Volume |
| American Healthways Inc. | ( AMHC | Quote | Chart | News | PowerRating) |
99 | 29.00 | – 7.25 | 255,500 |
| Copart Inc. | ( CPRT | Quote | Chart | News | PowerRating) |
93 | 36.35 | – 1.41 | 713,200 |
| Ebay | ( EBAY | Quote | Chart | News | PowerRating) |
90 | 63.51 | – 2.69 | 8,606,200 |
| Genesis Microchip | ( GNSS | Quote | Chart | News | PowerRating) |
99 | 64.90 | – 4.26 | 2,621,000 |
| Krispy Kreme Doughnuts | ( KKD | Quote | Chart | News | PowerRating) |
94 | 43.98 | + 1.08 | 839,900 |
| MTR Gaming Group | ( MNTG | Quote | Chart | News | PowerRating) |
95 | 14.70 | – 0.77 | 352,500 |
| Nvidia Corp. | ( NVDA | Quote | Chart | News | PowerRating) |
96 | 61.90 | – 2.54 | 9,975,800 |
| Panera Bread Co. | ( PNRA | Quote | Chart | News | PowerRating) |
94 | 50.51 | + 0.21 | 280,200 |
| PEC Solutions | ( PECS | Quote | Chart | News | PowerRating) |
99 | 34.34 | – 1.61 | 561,400 |
| THQ Inc. | ( THQI | Quote | Chart | News | PowerRating) |
94 | 49.40 | – 3.94 | 1,615,200 |
Stocks Forming a Handle
Career Education Corp.
(
CECO |
Quote |
Chart |
News |
PowerRating), up 0.43% on
average volume.
Direct Focus Inc.
(
DFXI |
Quote |
Chart |
News |
PowerRating), down 2.90% on
above-average volume.
Integra LifeSciences
(
IART |
Quote |
Chart |
News |
PowerRating), up 1.66% on half average
volume.
Company Name |
Symbol |
12 Month RS |
Price |
Price Change |
Average Volume |
| Career Education Corp. | ( CECO | Quote | Chart | News | PowerRating) |
92 | 34.35 | + 0.15 | 794,700 |
| Direct Focus Inc. | ( DFXI | Quote | Chart | News | PowerRating) |
91 | 30.40 | – 0.91 | 655,000 |
| Integra Lifesciences | ( IART | Quote | Chart | News | PowerRating) |
90 | 26.90 | + 0.44 | 315,200 |
Stocks Building A Base
Company Name |
Symbol |
12 Month RS |
Price |
Price Change |
Average Volume |
| None |